The Farwell Irrigation District Project is in Custer, Valley, Sherman and Howard counties in central Nebraska. Water is diverted from the Middle Loup river by the Arcadia Diversion Dam and carried via the Sherman Feeder Canal to Sherman Reservoir, the storage facility for the District. Below the reservoir a system of canals, pumping plants, laterals and drains provide for irrigation of 53,414 acres of fertile lands in Sherman and Howard counties.